MindPath Care Centers (“MindPath”), a portfolio company of River Cities Capital Fund VI (“River Cities”), has been acquired by Community Psychiatry, creating a national leader in the outpatient mental health sector. River Cities will remain a minority investor in the combined company and will retain a seat on the board.
River Cities acquired MindPath Care Centers, then known as Carolina Partners in Mental Health, in 2018. In partnership with Jeff Williams, we made substantial investments to build a highly scalable organization and develop a best-in-class behavioral health platform capable of addressing the substantial market demand for high-quality mental health services.
We acquired a controlling interest in MindPath in the fall of 2018, and over the course of our short investment horizon, the company has more than tripled in size through organic growth in North Carolina and acquisitions in South Carolina and Florida. River Cities played a significant role in recruiting key functional leaders and board members, supporting de novo and M&A growth efforts, developing a sophisticated IT infrastructure to manage the business and cultivating strategic relationships. Most of the MindPath management team will be retained and many of the systems and processes built and developed by the company will be used by the combined business going forward.
“Jeff and his team built an outstanding mission-driven business in this important area of healthcare,” said Patrick Dunnigan, Director at River Cities and board member at MindPath. “We are excited to see these two organizations unite, given their shared vision of expanding access to comprehensive and evidence-based outpatient mental health services and supporting the best behavioral health clinicians nationwide.”
Jeff Williams, CEO of MindPath, said, “River Cities was a terrific partner, and I thank them for their leadership and stewardship these last few years. We are excited to have found a like-minded organization in Community Psychiatry, who shares our values and aspirations. This combination will enable us to reach more patients in need and be an even better partner to our clinician, payer and employee stakeholders.” Jeff Williams will become Chief Strategy Officer of the newly combined entity.
TripleTree LLC acted as financial advisor, and McDermott Will & Emery acted as legal advisor to MindPath and River Cities in connection with the transaction.